Key Points
- Amazon signs agreements to explore small modular reactors (SMRs) for data center energy needs, working with X-Energy and Energy Northwest.
- The project aims to develop SMRs in Washington state, with an initial capacity of 320 MW, expandable to 960 MW to power over 770,000 homes.
- Amazon’s agreements reflect a broader trend of tech companies exploring nuclear energy, driven by increasing power demands from artificial intelligence.
- Amazon is leading a $500 million funding round to help X-Energy develop SMRs, with a goal of deploying 5 gigawatts by 2039.
Amazon announced on Wednesday that it has signed three major agreements to explore the development of small modular reactors (SMRs), a new nuclear power technology, as it seeks to meet the growing electricity demand of its data centers. This move makes Amazon the latest tech giant to invest in nuclear energy as companies search for sustainable and reliable power sources.
The company will fund a feasibility study for an SMR project in Washington state, in collaboration with X-Energy and Energy Northwest. The project, to be located near an existing Energy Northwest site, would allow Amazon to purchase electricity generated from four SMR modules. Additionally, Energy Northwest, a consortium of public utilities, will have the option to expand the project with up to eight modules, potentially generating 960 megawatts (MW) of power—enough to supply more than 770,000 U.S. homes. The extra power would be available for both Amazon’s operations and local utilities.
Amazon Web Services CEO Matt Garman emphasized the long-term potential of SMRs, stating, “Our agreements will encourage the construction of new nuclear technologies that will generate energy for decades to come.” SMRs are considered promising because their components can be pre-assembled in factories, reducing construction costs compared to traditional, larger nuclear reactors built on-site.
Despite the potential, SMRs face challenges. Critics argue that the technology may still be too expensive to scale effectively. Additionally, no SMRs are currently operational in the U.S., and concerns remain about the long-lasting nuclear waste these reactors will produce. However, nuclear energy is broadly supported by both Democrats and Republicans for its ability to generate power with minimal greenhouse gas emissions while providing high-paying jobs.
The announcement is part of a broader trend, as tech companies increasingly explore nuclear energy solutions to handle surging power needs driven by advancements in artificial intelligence. U.S. data center power consumption is expected to triple by 2030, requiring significant new energy sources. In response, Amazon is leading a $500 million funding round for X-Energy, aiming to bring 5 gigawatts of SMR capacity online by 2039.
Amazon has also signed an agreement with Dominion Energy to explore developing a 300 MW SMR project in Virginia, where demand is expected to increase by 85% over the next 15 years.
Other tech giants are also investing in nuclear power. Recently, Google partnered with Kairos Power to bring an SMR online by 2030, and Microsoft entered a deal to revive a nuclear unit at Three Mile Island in Pennsylvania.
